BIOPATH partners among the early adopters of TNFD reporting framework
In September 2023, the Taskforce on Nature-related Financial Disclosures, TNFD, launched a first version of its set of disclosure recommendations and guidance for organisations to report and act on nature-related dependencies, risks, impacts and opportunities. Among the many organisations that have been part of the development phase, 160 has chosen to be inaugural TNFD early adopters, among them two partner organisations in Mistra BIOPATH, AP2 and OX2.
Victor Elliot, Senior lecturer, School of Business, Economics & Law, University of Gothenburg.
Photo: Isac Lundmark.
Within Mistra BIOPATH, four workshops on the development of TNFD and feedback on its strengths and weaknesses have been conducted and a set of best practice guidelines for TNFD adoption is under way.
“We have had an extensive partner engagement throughout the first four workshops, and we are now in the process of testing the TNFD-framework together with a few select partners. It is a learning process to understand how to best collaborate between research and practice when implementing a new framework, but it is very rewarding and hopefully it will foster in-depth learning on both sides”, says Viktor Elliot, Senior lecturer, School of Business, Economics & Law, University of Gothenburg and work package leader Mistra BIOPATH.
AP2 benefits from TNFD and BIOPATH in strategic work on biodiversity data
The Second AP Fund, AP2, is one of five buffer funds in the Swedish pension system, with SEK 426bn in assets under management, including shares in over 2 000 companies. The Fund invests in different asset classes all over the world and shall, through responsible investment and ownership, manage its funds in an exemplary manner while also generating long-term returns with low risk for outgoing pensions. Sustainability is an integral part of all the organisation's analysis and decision-making processes.
Åsa Mossberg, Senior Sustainability Strategist,, AP2
When biodiversity was defined as a new focus area for AP2:s sustainability work, it coincided with TNFD starting its development and AP2 was able to use the framework in the development of its strategy on biodiversity, which was based on a materiality assessment.
“We have used the TNFD framework in the development of our strategy for biodiversity. We also contributed to the development of the framework, as members of the TNFD focus group. As one of 160 early adopters, we have now declared that we will report in accordance with the framework as we strive to be transparent and to adopt best practice," says Åsa Mossberg, Senior Sustainability Strategist, AP2.
How to choose which data to use?
Now that the TNFD has been launched, a lot of new data has been made available and many consultancies are offering their services and solutions. Since everyone is asking for numbers, it is important to know more about selection criteria and boundaries and to formulate what the data should be able to show.
“ The issues are complex, and we have benefited from being able to turn to BIOPATH researchers with scientific expertise to get input and more confidence in our choices. At the aggregate level, there is not much data yet, and it is particularly challenging to assess the geographical exposure through companies’ value chains, but when all companies report on their dependencies and impacts in operations and supply chains, we can get useful data," explains Åsa Mossberg.
Being an early adopter of TNFD aligns well with OX2 biodiversity strategy
OX2 is one of the largest developers of onshore wind power in Europe. Although wind and solar energy generation make up the largest part of the project portfolio, OX2 also work with hydrogen and energy storage projects and have a global presence. Sustainability is at the core of OX2 and the recommendations from TNFD is fully in line with the OX2 biodiversity strategy.
Linda Strindevall, Environment and Climate Change Manager, OX2
“We have followed the development of TNFD, and it has served as inspiration for how we developed our strategy on biodiversity. In particular, we were interested in how it aligns and integrates with the reporting standard for biodiversity, ESRS-E4, as we continue to prepare for emerging reporting standards,” says Linda Strindevall, Environment and Climate Change Manager, OX2.
The value of collaboration and frameworks such as TNFD and BIOPATH
As an early adopter of TNFD, OX2 gives public support for the framework and will report according to its set of recommendations starting in the financial year 2024. One of the key reasons for OX2 to be an early adopter is to emphasize the importance of continuously pushing forward in these matters, not wait and see. Linda Strindevall sees the benefits from being part of leading forums and initiatives, including BIOPATH, to be well informed and prepared to act.
“Our ambition is that renewable energy should not come at the expense of nature, which is why we seek to increase our understanding of renewable energy project’s impact on nature and how we can create credibility and transparency around our work on biodiversity. To achieve this, we collaborate with partners on several levels – from discussing TNFD with BIOPATH to testing algae cultivation structures with local businesses (see link below).”
The continuous work has raised awareness and has been useful for the company´s double materiality analysis, understanding more about how nature risks may affect the business and the whole industry of renewable energy.
Efficient pathway towards enhanced learning
Susanne Arvidsson, Programme Director, Mistra BIOPATH. Photo Roger Nellsjö
Susanne Arvidsson, Programme Director Mistra BIOPATH concludes the work related to TNFD within the consortia of academia, industrial partners, and actors in the public and financial sector.
“From our workshops, we have understood the importance of mixing companies from different industries with financial institutions when progressing our learning of how to work with the LEAP model. Organisations experience different challenges when it comes to collecting data and assessing DIRO (dependencies, impacts, risks and opportunities) along their value chains. Sharing knowledge and capacity build together across industries is an efficient pathway towards enhanced learning”.
Read more in TNFD article: TNFD Adopters – TNFD
AP2 links related to Sustainability and Biodiversity
Sustainability - Andra AP-fonden (ap2.se)
Hållbarhetspolicy_GB_231218.docx (ap2.se)
OX2 links related to Sustainability and Biodiversity
https://www.ox2.com/sustainability/how-we-do-it/climate-and-nature-contribution/biodiversity/
https://www.ox2.com/sustainability/what-we-do/sustainability-case-studies/exploring-synergies-in-bjorkskar/